December 13, 2016 / 4:17 AM / 8 months ago

GRAINS-Wheat eases from 2-week high, ample world supplies weigh

* U.S. wheat touches 2-week high on hopes for improved
demand
    * Abundant production in key exporting nations caps gains

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Dec 13 (Reuters) - Chicago wheat fell on Tuesday,
with plentiful world supplies capping gains after the market
climbed to a 2-week high earlier in the session on expectations
of improved demand for U.S. cargoes.
    Soybeans edged higher after declining on Monday, with
forecasts showing much needed rains in dry parts of Argentina's
crop belt.
    "Buyers have plenty of options as there is too much wheat
around," said Phin Ziebell, agribusiness economist at National
Australia Bank in Melbourne.
    "Prices came up a little bit on news of higher demand, but
there is no change in fundamental picture of large supplies. You
need a big supply disruption to sustain higher prices."
    The Chicago Board of Trade most-active wheat contract 
had slid 0.6 percent to $4.14-3/4 a bushel by 0346 GMT, after
touching the highest since Nov. 28 at $4.18-1/2.
    Soybeans rose 0.1 percent to $10.32 a bushel and corn
 gave up 0.1 percent to $3.60 bushel.
    The wheat market rose on Monday on hopes of renewed demand
for U.S. shipments. 
    Saudi Arabia's main state grain importer, the Saudi Grains
Organization, said on Monday it had bought 725,000 tonnes of
hard wheat. 
    Traders said they expected part of the purchase to be
sourced in the United States, which has struggled to gain
traction in the wheat export market as cheaper supplies have
been readily available from other countries.
    Wheat prices in Russia, the world's largest exporter, fell
last week due to stormy weather at the country's ports and as
global benchmarks dropped on forecasts of hefty world
inventories and bumper crops.
    Black Sea prices for Russian wheat with 12.5 percent protein
content for December supply were at $182 a tonne on a
free-on-board basis at the end of last week, down $2 from a week
earlier. 
    Soybeans were under pressure on forecasts of rains across
key producing areas in Argentina.
    Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Monday, traders said. The funds were net
sellers of soybeans and soymeal, while they were net even in
soyoil. 
    
 Grains prices at  0346 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  414.75   -2.50   -0.60%   +1.59%       421.24   59
 CBOT corn   360.00   -0.50   -0.14%   +1.84%       355.88   63
 CBOT soy    1032.00  1.00    +0.10%   +0.49%       1015.15  50
 CBOT rice   9.89     $0.03   +0.30%   +1.18%       $9.73    58
 WTI crude   52.74    -$0.09  -0.17%   +2.41%       $47.47   69
 Currencies                                                  
 Euro/dlr    $1.063   $0.008  +0.71%   +0.18%                
 USD/AUD     0.7496   0.005   +0.60%   +0.50%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)

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